Wella Co. Seeks NYSE Listing as Pure-Play Hair and Nail Owner
The company is preparing an initial public offering to fund a debt takeout and tax obligations tied to a reorganization.
The Wella Company is preparing an initial public offering of common stock, with a proposed NYSE trading symbol of WELA, after a reorganization that would leave KKR funds as the controlling stockholder. The company describes itself as the world's largest pure-play hair and nail business, selling color, care, styling and treatment products, nail lacquers and care, and heat- and air-assisted styling devices in a large number of countries.
Its portfolio spans seven brands, including Wella Professionals, ghd, Clairol, OPI, Wella / Koleston, Sebastian Professional and Nioxin. The company said Wella Professionals has held a leading global rank in salon hair color for six consecutive years and that OPI holds a leading global rank in premium retail nail. It said it serves a large base of hair and nail salons and stylists, with a direct sales organization and educators supporting a “Gain with Color, Grow with Care” strategy in the professional channel.
The company said it intends to use offering proceeds, together with new senior borrowings, to repay outstanding Facility B borrowings in full, to pay tax withholding and remittance obligations related to the WINS Exchange and the WOW Issuance, and to apply any remaining net proceeds to general corporate purposes. KKR Capital Markets LLC is an underwriter in the offering and is affiliated with the KKR funds that will remain the controlling stockholder; a qualified independent underwriter is expected to participate, and the company said it currently intends to use the NYSE controlled-company exception after the offering.